Becca’s Bows By: Rebecca MacarenoPeriod 2

Becca’s Bows

Commercial

http://www.youtube.com/watch?v=Rx2xjzZ9oOY

Magazine Ad

Why bows?

Perfect competition vs. Oligopoly Too much food competition Produced a differentiated product There wasn’t much bow competition

Making bows is fun It wasn’t stressful making

Easy to sell to my consumers (girls) I didn’t have to bug them to buy some

The Bow’s Purpose

Make girl’s hair fun In an inexpensive way

Make them more confident about their hair Share the gift of bows

My Goal

I wanted to make back at least half of the money I spent on supplies (ribbon, hair ties, etc.)

I wanted to create a good credibility My costumers create hype My costumers become loyal

I wanted to have fun in the process

Demand Schedule?

Pricing… Not a lot of people were producing bows so I was able to

create the price If there was more competition, I would change the price

The Cost

1 ½ wide & 12 ft long Hot pink ribbon 1 ½ wide & 9 feet long Light pink ribbon Pink thread Needle Hair bands

Total cost: $4

The labor

8 minutes to.. Form the bow Prepare thread and needle Sow to the hair band Do finishing touches

Oligopoly

75%

5%

20%

Products Sold

FoodBowsOther

• Small number of sellers

• Large amount of market power

• Price maker

Effect on the Profit

Since I was able to create the price.. My business was very cost-effective Cost to produce bow $.15 Profit was $1.85 per bow

The CostThe Profit

$0.00

$5.00

$10.00

$15.00

$20.00

$25.00

$30.00

Selling Week 1

Cost Profit 0

5

10

15

20Selling Week 2

Selling

Costumer Reviews

95% costumer satisfaction 1 mishap (a hair tie broke)

Most would recommend the bows to a friend Most would buy bows again

Sole Proprietor

Advantages

One person in charge (Me)

Easy to manage Did not have to share

profit with partners

Disadvantages

Unlimited liability Responsible for all the

business’s losses I had to do all the labor

Why not another business organization?

Partnership “Bands and Bows” My partners did not put in work I created all my bows They did not create their headbands I wanted all the profit

I decided to leave them

Success or Failure?

Success.. It cost $0.15 for each bow plus 8

minutes Profit of $1.85 per bow sold I did not have to share profit It was lots of fun

Real World?

I would compete in a monopolistic competition.. Hire more workers Increase the supply of needed material Make normal bows and specialize in holiday bows

Do you want a bow?

Catch me around school What type of bow? Color? Size? By when? Cost? $2